Question

Perform a fundamental analysis of the overall market and economy in Malaysia. How will COVID-19 outbreaks across the world affect the Malaysian economy in terms of economic growth, inflation, unemployment? 2. Which industry or sector in Malaysia is most positively affected? Which industry or sector in Malaysia is most negatively affected? Justify the industry or sector selection with detail comparisons and analysis. 3. Based on the industry that you have selected from part (2) above, recommend one (1) common stock in Malaysia that you think will have the best (or the worst) performance in the next 1-3 years within their industry.

Answer 1

Ans:- Malayasia's overall Market and Economy Analysis, Covid 19 effect to it, stock and industry analysis.

Economy in Brief;

Malaysia is the third largest economy in South east Asia.And in world it is 35 th largest economy. Its labour productivity, knowledge base economy, cutting edge technology and digital economy is much improved in comparision to its neighbouring countries like Vietnam, Thailand.

Its GDP is $1.2 trillion dollar, and per capita GDP is $29,700 as per HSBC 2012 data. It will become 21st largest economy in world by 2050 as estimated by HSBC.The electronics equipement , Petroleum, and gas has increased its Value. It was announced industrialised country in 2014 with eyesight improvement in GDP overall , Percapita Gdp and citizen style.

Malaysia's economy is mostly manaufacturing dependent. It economy was gradually changed since 1970 from agriculture to multisector economy in 1980s and after wards it moved towards industry sectors with so much japanese investment its economy furtuer improved resulting 7% increased along year in 20th century.

COVID 19 Effect in Malaysia:-

Household consumption rosed by 6.7% .

Export sector or segment was clearly damaged sharnked by 7.1% from previous year.and lopped off 4.7 percent points from growth.

Investment activities also decreased by 2.3%.

Unemployment rate in march 2020 was 3.9% in compare to 3.3% in february 2020. and in april and may it has surpassed 5%.

Banking sector also down by lapse of 100 basis points low . Bank of Negara malaysia saw decreased growth.

So in Malaysia Household sector was best and other like banking and financial sector is the worst.

Malaysia 's GDP growth was cut from 4.5% to -0.1% by world bank.

Tourism and travel sector was positively affected due to corna covid 19 along wiith banking sector and crude oil business.

Food and household sector negatively affected.

Best pick stock in Malaysia:-

AirAsia Group Bhd with price earning ratio of 3.48 times is the highest buy possible stock and cheapest stock for buy by investor. best perfgormance in recent year.